< previous page page_64 next page > Page 64 Loop multiplicity Very few managerial, economic, or social situations can be adequately represented by a single-loop structure. Several loops, both positive and negative, are invariably involved. The number and degree of interactions between these loops lead to difficulties in identifying key variables, predicting outcomes and hence are difficult to comprehend without computer simulation. Without the help of simulation and subsequent analyses, behaviour appears to be counter-intuitive. Given sound reasoning and understanding of structure in the development of a SD model, it is assumed that high quality prediction and control can be achieved. Prediction is all about using whatever means we may have

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to look into the future. The aim with SD is to simulate possible scenarios for businesses, firms and other organisations which, it is assumed, substantially decreases uncertainty and gives us greater confidence about implementing decisions. Time-based mathematical

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